Excused: Councilmember Neil McClanahan.

June 5, 2018 Page 1 CONVENE: PRESENT: 7:00 p.m. Mayor Pete Kmet and Councilmembers Michael Althauser, Joan Cathey, Eileen Swarthout, Leatta Dahlhoff, Debbie Sullivan, and Tom Oliva. Excused: Councilmember Neil McClanahan. Staff: City Administrator John Doan, City Attorney Karen Kirkpatrick, Assistant City Administrator Heidi Behrends Cerniwey, Police Chief Jon Weiks, Fire Chief Scott LaVielle, Community Development Director Michael Matlock, Parks and Recreation Director Chuck Denney, Communications Manager Ann Cook, Senior Planner David Ginther, and Recording Secretary Valerie Gow. ADDITIONS TO THE AGENDA: The Consent Calendar was amended to reflect the addition of the appointment of Jack Park to the Lodging Tax Advisory Committee. SPECIAL ITEMS: TUMWATER HILL ELEMENTARY 5 TH GRADE BAND: Heather Stoker, Music Teacher, Tumwater Hill Elementary School, introduced her 5 th grade student musicians. Playing marimbas, the students performed two songs. Several of the performers were third and second grade students, as well as a kindergarten student. Ms. Stoker invited the Council and the community to the final performance this year at the Olympia Farmers Market on Saturday, June 9 at 10 a.m. to 11 a.m. Following the performance, Mayor Kmet presented each student with a Tumwater pencil. RECOGNITION OF TRENT GRANTHAM, BOARD OF PARKS & RECREATION COMMISSIONERS: Mayor Kmet recognized Trent Grantham for his many years of service on the Parks and Recreation Commission. Mr. Grantham also serves on the City s Tree Board and graciously agreed to step aside to enable another resident to serve on the Parks and Recreation Commission. Mayor Kmet presented a letter to Mr. Grantham acknowledging his service on the Parks and Recreation Commission, as well as plaque with an image of the Old Brewhouse. Mr. Grantham thanked the Council for supporting parks and recreation. He commented on the possibility of a parks measure to enable the City to complete much-needed maintenance and increase the number of parks and open space in the City. GARDEN RAISED BOUNTY (GRuB) Katie Rains, Executive Director, Garden Raised Bounty (GRuB) updated the Council and community on current activities of the

June 5, 2018 Page 2 UPDATE: organization. She thanked the City for partnering with GRuB. The mission of GRuB is to grow healthy food, people, and community. GRuB creates opportunities for people to learn, lead, and thrive. This year, five gardens were constructed in Tumwater as part of the Victory Garden Project. The Tumwater F.R.E.S.H. Garden Program will host 30 students this summer as part of a job training program in partnership with area schools and the New Market Skills Center. The Tumwater FRESH Program of the Tumwater School District is now offering an independent program during the school year and will be working with GRuB over the summer. GRuB will partner by administering student stipends. Other ways GRuB continues to partner include writing grants to provide additional resources to invest in important programs, as well as engaging with Tumwater students in Victory Garden project builds in the Tumwater area. GRuB also hosts field trips. This summer, youth at the GRuB Farm will grow 20 shares of food for low-income seniors in partnership with Senior Services of South Sound, as well as partnering with WIC-eligible families on opportunities for the adults and their children to visit the farm once weekly to receive fresh food. GRuB is hosting three, week-long camps for children. This spring, GRuB partnered with Olympia Pediatrics to sign up eight families to receive a prescription from their pediatrician for families where one child in the household is obese to provide access to a health coach and monthly meetings at GRuB to help children learn to cook and participate in gardening. Ms. Rains described GRuB s youth program as a program that infuses the best youth development model into area schools that has become a catalyst for education reform. The GRuB in Schools Initiative has been successful by helping the Olympia School District create the Freedom Farm and Freedom Farmer s Program. Next year, the program will be offered district-wide at the Freedom Farm at Capital High School. GRuB is also working with North Thurston Public Schools to expand the program into the school district primarily because of the adoption of programs by the Olympia and Tumwater School Districts. Over the last several years, tribal and non-tribal educators have conversed to create a K-12 wild food and medicine curriculum. Regional tribes are contributing also and integrating the curriculum into education programs. Over the next few months, the curriculum will be available to educators around the state who are seeking ways to reconnect children to the edible and healing world. The program is under consideration for a National Science Foundation grant.

June 5, 2018 Page 3 Ms. Rains described how GRuB s mission has expanded from growing food, people, and communities by changing systems. The organization is pursuing new ideas and absorbing some of the risks of social innovation and supports the integration of fully fledged and worthwhile ideas into the fabric of area institutions. GRuB in the Schools is a good example. Kristen Maring shared information on the Tumwater F.R.E.S.H. Program at Isabella Bush Park. Students are working on landscaping improvements and growing crops in the garden. The program partnered with Tumwater Rotary to dig post holes for a new fence. Last fall, an FAA chapter was formed at the garden. Students participate in water quality testing of the Percival Creek tributary with the assistance of Stream Team members. Tumwater s Water Resources Educator, Debbie Smith, provided information on salmon water needs. The intent is to improve the quality of water in the small creek running through the farm. Students participated during the Hunger Action Day at the State Capitol and spoke to many state representatives about food, hunger, and security. Ms. Maring thanked Mayor Kmet for spending time at the garden to help construct the fence during the Earth Day volunteer event. King 5 News featured the garden in a short video. A new crew in July is possible because of the Council s support of the summer work training program. Funding of the program has enabled participation by 12 students. Ms. Maring invited the Council to attend Family Night at the farm on Wednesday, June 13 from 5:30 p.m. to 6:30 p.m. Mattie White, a student, shared information about how the program has impacted her. She thanked the Council for supporting the Tumwater F.R.E.S.H. Program. Ms. Rains invited everyone to attend a fundraiser event on Thursday, June 21 at the annual farm dinner to kick off summer programming. Councilmember Cathey commented on the growth of GRuB over the years and how it has impacted and changed the lives of youth in the community. Ms. Rains described how Victory Garden Project builds free gardens for families in the community through support from veteran volunteers. A new Victory Garden Project Coordinator was recently hired. The coordinator is a combat veteran. GRuB is striving to recruit veteran volunteers.

June 5, 2018 Page 4 PUBLIC COMMENT: Donovan Cathey with the Tumwater Fire Department, shared information on the Tumwater Firefighters 6 th Annual Coats for Kids Auction on Friday, July 13 at Pints Barn from 6 p.m. to 9 p.m. Over the last five years, Tumwater Fire Department has participated in the program to provide coats to children. Over $55,000 has been raised in the last five years. Each year, the amount is increased to provide more coats for children in the Tumwater School District. All funds are used to purchase coats. Last year, the event raised $15,000. The annual fundraiser features a live auction, raffles, silent auction, and a band. Mr. Cathey spoke to the support by local businesses and partnerships with several organizations. For several years, the department has worked closely with TOGETHER to provide coats for homeless children. Another recent partnership is with First Responders Making a Difference, a new non-profit focused on working with local firefighters and police to provide support to those in immediate need. The community can donate by visiting www.tumwaterfirefighters.org. CONSENT CALENDAR: a. Approval of Minutes: Regular Meeting, May 15, 2018; Worksession, May 8, 2018; Council Retreat, May 18-19-2018, Squaxin Island Tribe Joint Meeting, May 23, 2018 b. Payment of Vouchers c. Thunder in the Valley 4 th of July Fireworks Display d. Advisory Board Appointments & Reappointment of: Charles Schneider and Amy Hargrove to the Board of Parks & Recreation Commissioners; Renee Radcliff Sinclair to the Historic Preservation Commission, and Jack Park, Chami Ro, Satpal Sohal, Brian Reynolds, Dave Bills and Brett Hardcastle to the Lodging Tax Advisory Committee e. Reappointment of Chris Leicht to the Capital Area Regional Public Facilities District Board of Directors f. Resolution No. R2018-014, Surplus Property MOTION: Councilmember Oliva moved, seconded by Councilmember Sullivan, to approve the consent calendar as published. Motion carried unanimously. Mayor Kmet reviewed the items approved on the consent calendar. Charles Schneider thanked the Council for his appointment to the Parks and Recreation Commission. He is honored to serve on the Commission. He acknowledged the support of his wife and thanked Mr. Grantham for his willingness to vacate his position to enable him to serve on the Commission.

June 5, 2018 Page 5 PUBLIC HEARING: RESOLUTION NO. R2018-012, SAPP ROAD ISLAND ANNEXATION: Planner Ginther reported the annexation involves an unincorporated island of parcels surrounded by the City. The City had 15 islands primarily created through prior annexations. Today, the City has 13 county islands with two recent annexations completed earlier in the year. The proposed annexation addresses a county island in the Sapp Road area. The proposal would annex the entire county area into the City. The island includes nine properties with six of the properties split by City limits. Staff completed site notifications to the property owners and published the proposed annexation in the local newspaper. Staff received an email from an owner with questions about future transportation and forestry issues in the area. Staff responded immediately to the questions. Staff requests that after the public hearing, the Council approve the resolution of intent to annex and forward the annexation to the Thurston County Boundary Review Board for a 45-day review period. Following the end of the review period and no appeals, the Boundary Review Board will return the annexation to the City for final action. Mayor Kmet opened the public hearing at 7:59 p.m. PUBLIC TESTIMONY: Arthur Wuerth, 2409 Sapp Road SW, spoke in opposition to the annexation. The information from staff was very clear. He counted six homes on the properties with three properties opposed and one probable. He understands the annexation process because he was a former city finance director. He explained the process to many of his neighbors. However, a new 10,500 square foot house will likely out vote the opposition. Although he believes Tumwater is a great community and identifies with the City when traveling, he is opposed because when the City Council overlooked the brewery they would not have annexed any properties opposing the action, which as staff explained, was how many of the rural islands were created. The area has been a rural island because that was the preference of the property owners. Mayor Kmet closed public hearing at 8:01 p.m. MOTION: Councilmember Sullivan moved, seconded by Councilmember Oliva, to approve Resolution No. R2018-012, Sapp Road Island Annexation of subject properties and forward the annexation to the Boundary Review Board for its review period.

June 5, 2018 Page 6 Councilmember Cathey asked Mr. Wuerth why he opposed annexation. Mr. Wuerth replied that he and many of the other property owners identify more with rural issues rather than urban issues. Many of the properties are homestead properties. The City voted to ban fireworks in the City. He referred to cases of dynamite not being an issue to his neighbors because of the rural nature of the area. Some of his neighbors have cattle and identify more with the rural environment. He understands the annexation will likely occur but wanted an opportunity to speak against the proposal. He does not believe that too much would change as the information was well written. Mayor Kmet commented on the changes that have occurred in the area over the last 25 years. Councilmember Cathey asked whether the annexation would affect homeowners with cattle. Planner Ginther advised if the use was previously established as a legal use, the use would be allowed to continue. The City added a chapter addressing those types of situations, as well as special regulations allowing livestock within the City limits, and a right to farm ordinance to protect existing farms in the City. MOTION: Motion carried unanimously. Planner Ginther advised that the Boundary Review Board has a 45- day waiting period to enable property owners to appeal the annexation. If no appeals are received, the Boundary Review Board returns the annexation for the Council s adoption of an ordinance to annex the properties. COUNCIL CONSIDERATIONS: MEMORANDUM OF UNDERSTANDING & INTERLOCAL AGREEMENT FOR 3- YEAR EXTENSION OF COMMUNITY DEVELOPMENT BLOCK GRANT FUNDING: City Administrator Doan reported that for the last six years, the City has participated with the City of Lacey and Thurston County in the Community Development Block Grant (CDBG) Program to receive and distribute federal funds. Thurston County participates on behalf of the smaller cities in the county (Yelm, Tenino, Rainier, & Bucoda) as well. The jurisdictions signed an interlocal agreement to receive and share the CDBG funds from the federal government to benefit and to provide services for capital facilities to benefit the low-income population. The agreement distributes the funds equally to each jurisdiction during a three-year cycle. Typically, CDBG funds have totaled $800,000 to $900,000 each year. During the first year of the three-year cycle, the funds are distributed to Thurston

June 5, 2018 Page 7 County and the smaller cities, followed by the City of Lacey in the second year, and the City of Tumwater in the third year. The Council recently approved distribution of CDBG funds to conclude the current cycle. This year, the CDBG grant was nearly $1 million. The proposal is a staff recommendation to approve an interlocal agreement that is essentially the same as the prior agreement to continue the program for another three-year cycle. A companion Memorandum of Understanding speaks to the implementation of the agreement. One proposed change to the interlocal agreement amends Section 11 of the Interlocal Cooperation Agreement adding the following language, The County will prepare, in consultation with the Cities, a Consolidated Plan, and subsequent Annual Action Plan(s) based on applicable City funding allocations. The language speaks to the Consolidated Plan, which is completed every five years by Thurston County and the City of Olympia. Although the City of Olympia participates in a separate CDBG program, Thurston County and the City of Olympia agreed to prepare a Consolidated Plan together. The City of Tumwater s funding allocations must be consistent with the Consolidated Plan. Thurston County also prepares the annual Action Plan based on funding decisions of each partner jurisdiction. Staff recommends the Council approve and authorize the Mayor to sign the Memorandum of Understanding with Thurston County and the City of Lacey and Interlocal Agreement as amended. Councilmember Cathey inquired about any discussions addressing the amount of administrative costs each of the cities pay Thurston County. City Administrator Doan reported the 20% administrative fee is the amount designated by the Department of Housing and Urban Development (HUD) for costs to administer the CDBG program. The county spends a tremendous amount of time administering and preparing the paperwork in addition to supervising the process and reporting on the status of the program contracts to HUD. This year, the City paid Thurston County approximately $200,000 to administer the program. Councilmember Cathey said the issue has been raised each year in terms of the cost of administering the program. Additionally, members of the Community Investment Partnership (CIP) have also addressed the issue. City Administrator Doan added that the CDBG funds include an additional allocation for administration of the grant funds, which is deferred to the county. Those funds are above the CDBG allocation afforded to each jurisdiction. Mayor Kmet said the agreement does not speak to the 20%, which

June 5, 2018 Page 8 means it could be negotiable. The City of Lacey has addressed similar concerns. Based on the increase in other housing funds with the county also receiving a percentage, it might be timely to discuss the issue with the county. However, because of the lack of data, it would be difficult to advocate for a specific amount. It would be worthy for the jurisdictions to pursue a conversation. Councilmember Sullivan commented on the amount of paperwork and the number of requirements required by HUD. The tasks require a significant amount of work to complete. Mayor Kmet added that the City of Lacey has indicated this next funding cycle is likely the last time the Lacey will participate as the City may be large enough to receive a direct allocation from HUD. MOTION: Councilmember Swarthout moved, seconded by Councilmember Cathey, to authorize the Mayor to sign the Memorandum of Understanding with Thurston County and the City of Lacey, and the Interlocal Agreement to extend the Community Development Block Grant funding for an additional three years (FY 2019-2021) as amended. Motion carried unanimously. COMMITTEE REPORTS: PUBLIC HEALTH & SAFETY: Tom Oliva GENERAL GOVERNMENT: Joan Cathey PUBLIC WORKS: Neil McClanahan BUDGET AND FINANCE: Pete Kmet MAYOR/CITY ADMINISTRATOR S REPORT: The next meeting on June 12 at 8 a.m. includes a review of the Fire Department. The committee met earlier in the day and received an update on the new public records disclosure requests software program, reviewed Phase 1 of the Regional Climate Action Plan for emission targets, and reviewed proposed changes to warehouse distribution center standards and some changes in definitions. The next meeting is scheduled on June 7 at 8 a.m. The Council previously received a quarterly financial report. Mayor Kmet attended several Memorial Day ceremonies on behalf of the City. Councilmember Sullivan spoke at the Odd Fellows Memorial Day ceremony. A public meeting is scheduled on June 7 at 7 p.m. at the Old Town

June 5, 2018 Page 9 COUNCILMEMBER REPORTS: Center to share information on the pending Desoto Canyon roadway construction project. The Olympia Gay Pride Parade is scheduled on June 10. The City is participating with a fire truck. City Administrator Doan reminded the Council to notify staff of participation in the City s 4 th of July Parade. City Administrator Doan shared several notes of acknowledgements and thank yous to staff from the community. Michael Althauser: The Joint Animal Services Commission participated in a recent allday retreat with discussions on the five year strategic plan and celebrating milestones achieved over the past year including certification as a no-kill shelter by achieving a 92% live release rate. Historically, the animal shelter was at 60% for live releases; however, with some changes in practices and establishing mission, vision, and values, the shelter was able to increase live releases. Challenges moving forward include aging infrastructure with the building celebrating 20 years with many of the kennels in need of renovation and updating. Staff was asked to develop a capital facilities plan for addressing infrastructure needs. Since 2011, the number of incoming number of dogs and cats has declined by half primarily because of an improved economy and changes in pet adoptions. Eileen Swarthout: During the recent Experience Olympia and Beyond annual meeting at Great Wolf Lodge, 2018 tourism awards were presented for Community Unity, Tourism Visionary, and Excellence in Hospitality. City Administrator Doan and Dr. Stokes, South Puget Sound Community College, presented the keynote address on the creation of the new Craft District in Tumwater. Ice Chips announced its partnership with Olympic Crest Coffee and creation of a new ice chip flavor Mima Mounds Macchiato. The annual update reported Thurston County tourism has increased by 15%. Councilmember Swarthout reported on her participation in the volunteer recognition event and awards for the Tumwater Youth Program (TYP). Last year, TYP hosted 19 events. TYP had over 430 volunteers, logged over 1,500 volunteer hours this year, and served 3,500 youth participants.

June 5, 2018 Page 10 At the last Tumwater United for Families meeting, information was shared on the dates of the Tumwater Parks and Recreation summer camps. Recreation Manager Anderson shared information on the movies for the Film on the Green at the Golf Course each Friday in August. Stuff the Bus is scheduled on August 11 from 10 a.m. to 3 p.m. at the Fred Meyer parking lot. The YMCA shared information on scholarships available for youths aged 8 to 13. More information can be obtained by contacting the YMCA. Councilmember Swartout reported she attended the first planning meeting for Tumwater s sesquicentennial celebration. Joan Cathey: Leatta Dahlhoff; Debbie Sullivan: Tom Oliva: Councilmember Cathey reported on her participation in several Memorial Day services. She shared that several attendees spoke highly of the City and elected officials, which was attributed to comments by Dr. Stokes during a recent meeting at the Olympia Country Club. He shared information about the partnership between the City and the college and the City s Craft District. Thurston County Communications E911 has scheduled an additional meeting this month. Since the last meeting, the Intercity Transit Authority conducted a public hearing on the 2019-2022 Transportation Improvement Program and is updating the Master Plan for the Pattison Street facility rehabilitation and expansion project. Because of the number of individuals completing the survey for Intercity Transit s Road Trip, the Authority extended the consultant contract to analyze the results of the surveys. The Authority received a presentation on the Village Vans Program. The program is a volunteer program providing training to individuals to enter the workforce, as well as providing transportation for people re-entering the workforce. Several of the Village Van drivers have been hired as Intercity Transit bus operators. A special public hearing on May 23 on the proposed route changes resulted in standing room only. Public comments on the proposed changes can be submitted until June 20. Based on public input, staff is recommending some minor adjustments. The proposed changes are revenue neutral. Councilmember Oliva reported he attended the picnic sponsored by the Public Works Department for Public Works Week. He also attended a Memorial Day ceremony with Councilmember Sullivan who provided remarks and represented the City well. At the last meeting of the Thurston Regional Planning Council (TRPC), members discussed near-term actions to relieve congestion on I-5. Some options include ramp meters, running buses along the

June 5, 2018 Page 11 shoulders of the freeway, scheduling work hour flexibility of Capitol Campus state employees, marketing to increase vanpool participation, and implementing transit signal priority. Members discussed an opportunity to serve as staff for the Olympic Peninsula Regional Transportation Authority. The existing organization is currently staffed by employees from the State of Washington. However, the state is withdrawing staff support. TRPC and Grays Harbor are being considered to serve as staff for the organization. TRPC Assistant Director Jared Burbidge is leaving TRPC to accept a position with the Washington Cities Insurance Authority. OTHER BUSINESS: Mayor Kmet encouraged the Council to advise him of any Council presentations planned by any of the intergovernmental committees or boards. Mayor Kmet reported on his attendance to the Black Hills High School Baccalaureate ceremony. ADJOURNMENT: With there being no further business, Mayor Kmet adjourned the meeting at 9:52 p.m. Prepared by Puget Sound Meeting Services, psmsoly@earthlink.net